Aspen Technology Inc (AZPN)
Days of sales outstanding (DSO)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | ||
|---|---|---|---|---|
| Receivables turnover | 9.76 | 8.50 | 3.77 | |
| DSO | days | 37.40 | 42.92 | 96.84 |
June 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.76
= 37.40
Aspen Technology Inc's Days Sales Outstanding (DSO) has shown a decreasing trend over the past three years, indicating an improvement in the company's ability to collect its accounts receivable efficiently.
In particular, the DSO decreased from 96.84 days in Jun 30, 2022, to 42.92 days in Jun 30, 2023, and further decreased to 37.40 days in Jun 30, 2024. This signifies that the company has been able to convert its accounts receivable into cash at a faster pace in recent years.
A decreasing DSO suggests that Aspen Technology Inc has been managing its credit and collections processes effectively, which could enhance its liquidity position and working capital management. This may also indicate stronger customer relationships and better credit control measures implemented by the company.
Peer comparison
Jun 30, 2024